Plan viability With improved According to the HUB International 2025 Outlook Executive 5 Survey, 37% of employers identify needing additional support engagement and from third-party plan sponsors to increase participation with the plan, and 36% say they are emphasizing internal additional features, communications to increase enrollment. Similarly, 36% are 6 leveraging auto enrollment and 35% are using counseling to retirement plans in boost participation. Education and communication are important to boost plan 2025 can do more enrollment, but it’s important to provide resources that align with individual preferences and needs. That means for employees and understanding how individuals want to receive education and information — and not just assuming specific generations employers. want information delivered in a single manner. The past two years have largely seen employers try to A knowledgeable plan advisor can help identify employees’ digest the changes from the landmark SECURE 2.0 Act. The financial situation and provide solutions that will result in legislation has transformed retirement plans with operational higher participation and viability. For example, knowing what changes and added features such as start-up tax credits that Millennials want versus Generation X employees want can are increasing the ability for employers to offer plans. help identify what changes to the retirement plan will boost participation. In 2025, plan sponsors will have the opportunity to take some of Secure 2.0’s lesser-promoted features and help cement financial wellbeing in a diverse workforce. For 3. PNC, 2024 Financial Wellness in the Workplace Report: The Evolving Needs of the Multigenerational American Workforce, August 28, 2024. example, employers can match their employees’ student 4. U.S. Bureau of Labor Statistics, “1974 – 2024: Celebrating 50 Years of loan repayments within their 401(k) plan, and they can Protected Retirement Plans,” accessed September 23, 2024. create emergency savings accounts linked to their defined 5. HUB’s Outlook Executive Survey polled 900 C-Suite and VP-level contribution plan. executives on the issues facing them on profitability, employee vitality and organizational resilience. 6. Numbers do not add up to 100% because survey respondents could Another important retirement plan enhancement is choose multiple options. guaranteed income through annuities within the plan or converting some 401(k) savings into an annuity. Although these options are available within a few retirement plans, Secure 2.0 makes them far more feasible for smaller Case Study organizations. School districts across the U.S. are using re- Providing employees with access to retirement income tirement plan matches to incentivize teacher solutions within the workplace plan can facilitate retirement recruitment and retention. In one instance, readiness, mirroring the guaranteed income that traditional a local school district worked with HUB and defined benefit pension plans offer. implemented an employer match and auto But although about 94% of employers offer a retirement enrollment — and saw a massive jump in par- plan, not all employees (81%) are enrolled. More than ticipation from 35% of the workforce to 95%. half of employers offer a company match for employee Higher engagement with the retirement plan contributions to a retirement plan, but almost three in 10 workers with access to the match don’t take advantage of can help cement employee relationships and 3 ensure improved retention. it. And fewer than 40% of low-wage group employees have access to a retirement plan.4 3